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New Richmond council adopts balanced 2025 budget and five-year CIP; library bond and library project funding anticipated
Summary
The New Richmond City Council approved a balanced 2025 operating budget and the 2025–2029 capital improvement plan, projecting roughly $9.6 million in revenues and expenditures, a 4.15% levy increase and a planned $10 million lease revenue bond through the CDA to support the library project.
The New Richmond City Council voted to adopt the 2025 operating budget and the 2025–2029 capital improvement plan after a staff presentation and public hearing.
City finance staff said the proposed 2025 budget totals just over $9.6 million in both revenues and expenditures, an increase of about $712,000 (8%) from 2024. About 60% of city revenues still come from property taxes, staff said, and intergovernmental revenue is projected to rise by roughly $140,000 largely because of Act 12 and increased county funding for the library. "The proposed revenues underneath the 2025 budget are just over $9,600,000," staff stated during the presentation.
The presentation noted a planned capital program that includes a major library project. Staff said the city anticipates a $10,000,000 lease revenue bond issued through the New Richmond Community Development Authority in early 2025 to help finance the library. The overall CIP for 2025 was described as roughly $20,000,000, with about 62% from debt, 29% from impact fees or cash, and 9% from grants.
Officials also reviewed levy components. The proposed levy would rise by about $298,000 versus 2024—a 4.15% change—though staff projected the city portion of the tax bill for a median $350,000 home could fall by roughly $37 because of net new construction growth.
Following the hearing, a council member moved to approve the budget and the motion passed on a roll-call vote with all present aldermen recorded as voting yes. Council members praised staff work preparing the documents and emphasized the goal of maintaining the city’s strong credit rating. "These budgets don't occur overnight," a staff presenter said, thanking council and commission members for their input.
The council authorized the budget and directed staff to proceed with the items in the CIP. No amendments to the budget were adopted at the meeting. The bond issuance for the library project was described as a separate CDA issuance and not part of the city's general obligation debt calculation.
What’s next: The city will proceed with debt issuance steps for the CDA-backed library financing and implement the adopted operating budget in 2025.
